Stimulating Excellence: Unleashing the Power of Innovation in Education

Hess, Frederick M.

American Enterprise Institute for Public Policy Research

The United States is facing one of the worst financial crises of recent history. America is also experiencing a quiet crisis, as well--one that has been building in the nation's classrooms and schools for decades. This nation is failing to prepare the next generation of Americans as citizens, thinkers, and graduates prepared for success in a global society. Yet, even amid this crisis, there are reasons for optimism. Recently, a new generation of social entrepreneurs has begun to transform public education with innovative solutions that have extraordinary potential to serve American students more effectively and efficiently. These innovators have challenged conventional understanding of "business as usual" in American public education by introducing new philosophies, methods, and expectations for the education of this nation's students. The 2009 American Recovery and Reinvestment Act accords increasing importance to entrepreneurship in education, primarily through a $650 million "innovation fund" designed to allow non-profits with a record of increasing student achievement to scale-up their initiatives. Nonetheless, entrepreneurs in education continue to face significant barriers to success and expansion: rigid bureaucracies, lack of access to capital, limited supply of human talent and other barriers inhibit entrepreneurs' entry and growth, and together combine to discourage new innovations. This report gathers creative solutions and ideas from a collection of leading education entrepreneurs about federal and state policy changes that can support the emergence, success, and growth of entrepreneurial problem-solvers while encouraging a determined focus on quality and results. Primarily addressed are the specific local, state and federal policy barriers that have thus far precluded thriving entrepreneurial activity in public education. Several policy approaches for district and state superintendents, governors, and the new federal administration are outlined. (Contains 27 endnotes.) ["Stimulating Excellence: Unleashing the Power of Innovation in Education" was also produced by Center for American Progress, New Profit, and Public Impact. This paper was also sponsored by the Eli and Edythe Broad Foundation.]